One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies that regularly increase dividends show confidence in the potential growth of future earnings.
I use the CCC List as a starting point and apply the following screens:
- Market cap ≥ $500 million
- No stocks that are being acquired
- No Over-The-Counter or Pink Sheet stocks
- Dividend Yield ≥ 1.5% for Challengers
- Dividend Yield ≥ 1.0% for Contenders and Champions
Last week, three companies passing these screens declared dividend increases. The following table provides a summary of these increases.
The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).
Summary of Dividend Increases: August 27-31, 2018 |
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Previous Post: 4 Dividend Increases: August 20-24, 2018 |
TFS Financial (TFSL)
TFSL, through its subsidiaries, provides retail consumer banking services in the states of Ohio and Florida in the United States. The company offers various deposit and loan products, and provides escrow and settlement services. TFSL was founded in 1938 and is headquartered in Cleveland, Ohio.
The board of directors of TFSL has declared a quarterly dividend of 25¢ per share. The new dividend is 47.06% above the prior dividend of 17¢ per share. The dividend is payable on September 24 to shareholders of record at the close of business on September 10.
Harris (HRS)
Founded in 1916 and headquartered in Melbourne, Florida, HRS is an international communications and information technology company providing advanced, technology-based solutions to mission critical challenges of government and commercial customers. The company has more than 23,000 employees and operates in more than 125 countries.
The company announced an increase of its quarterly dividend of 20.18% to 68.5¢ per share. The ex-dividend date is September 6 and the dividend will be paid on September 21 to shareholders of record on September 7.
Avnet (AVT)
AVT is a technology solutions company that distributes electronic components worldwide. The company’s Electronic Components segment serves automotive, medical, defense and aerospace markets. Its Premier Farnell segment distributes kits, tools, and components to engineers and entrepreneurs. AVT was founded in 1921 and is headquartered in Phoenix, Arizona.
The company announced a quarterly DIV increase of 5.26% to 20¢ per share. All shareholders of record on September 10 can expect the dividend to be paid on September 20.
Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.
Below, I'm including charts from F.A.S.T. Graphs for two of this week's dividend raisers, HRS and AVT.
In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).
HRS's price line (black) is above the stock's normal P/E ratio (blue) and above the primary valuation line (orange). The stock is trading at a premium to fair value. An investment in HRS in July 2009 would have returned 22.1% on an annualized basis (with dividends included).
AVT's price line is below the primary valuation line and above the stock's normal P/E ratio. The stock is trading at about fair value. An investment in AVT in July 2009 would have returned 10.3% on an annualized basis (with dividends included).
Upcoming Ex-Dividend Dates
As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.
The table is sorted by Ticker, and as before, Next Div is annualized. Please note that Next Div links to the latest dividend declaration announcement.
Summary of Upcoming Ex-Dividend Dates: Dividend Increases: September 4-17, 2018
Company | Ticker | Yield | RecentPrice | Yrs | 5-Yr | Next | Ex-Div | Pay- |
American Assets Trust | 2.73% | $39.50 | 7 | 4.60% | 09/12 | 09/27 | ||
Automatic Data Proc. | 1.88% | $146.75 | 43 | 10.60% | 09/13 | 10/01 | ||
Federal Agricultural Mortgage | 3.01% | $77.07 | 7 | 29.20% | 09/13 | 09/28 | ||
Altra Industrial Motion | 1.74% | $39.05 | 6 | 45.00% | 09/14 | 10/02 | ||
Arthur J. Gallagher & | 2.27% | $72.14 | 8 | 2.80% | 09/06 | 09/21 | ||
Albemarle | 1.40% | $95.52 | 24 | 10.30% | 09/13 | 10/01 | ||
Preferred Apartment Communities | 5.72% | $17.82 | 8 | 12.40% | 09/13 | 10/15 | ||
Avnet | AVT | 1.65% | $48.40 | 6 | N/A | 09/07 | 09/20 | |
Avery Dennison | 1.98% | $105.18 | 8 | 10.30% | 09/04 | 09/19 | ||
Bank America Corp. | 1.94% | $30.93 | 5 | 57.70% | 09/06 | 09/28 | ||
Best Buy | 2.26% | $79.56 | 15 | 14.90% | 09/17 | 10/09 | ||
Becton Dickinson & Co. | 1.15% | $261.87 | 46 | 9.80% | 09/06 | 09/28 | ||
Briggs & Stratton | 2.78% | $20.16 | 6 | 4.00% | 09/17 | 10/03 | ||
Big Lots | 2.79% | $43.05 | 5 | N/A | 09/13 | 09/28 | ||
BlackRock | 2.61% | $479.06 | 9 | 10.80% | 09/06 | 09/24 | ||
Broadridge Financial Solutions | 1.44% | $135.14 | 12 | 15.50% | 09/17 | 10/03 | ||
BancorpSouth | 1.95% | $34.80 | 6 | 66.70% | 09/13 | 10/01 | ||
Commerce Bancshares | 1.32% | $71.06 | 50 | 5.30% | 09/06 | 09/24 | ||
Community Bank System | 2.30% | $66.13 | 26 | 4.20% | 09/13 | 10/10 | ||
Chemical Financial | 2.38% | $57.12 | 7 | 6.10% | 09/06 | 09/21 | ||
C.H. Robinson Worldwide | 1.92% | $96.08 | 20 | 6.20% | 09/06 | 09/28 | ||
Chico's FAS | 3.73% | $9.12 | 9 | 9.50% | 09/14 | 10/01 | ||
Comerica | 2.46% | $97.48 | 9 | 16.70% | 09/13 | 10/01 | ||
CME Group | 1.60% | $174.73 | 8 | 8.10% | 09/07 | 09/25 | ||
Canadian National Railway | 2.05% | $88.91 | 21 | 11.20% | 09/06 | 09/28 | ||
CNO Financial Group | 1.85% | $21.61 | 7 | 42.30% | 09/07 | 09/24 | ||
Chesapeake Utilities | 1.72% | $86.00 | 15 | 5.90% | 09/13 | 10/05 | ||
CSG Systems International | 2.25% | $37.35 | 6 | N/A | 09/11 | 09/27 | ||
Community Trust Bancorp | 2.91% | $49.40 | 38 | 2.70% | 09/13 | 10/01 | ||
Dominion Energy | 4.72% | $70.77 | 15 | 9.60% | 09/06 | 09/20 | ||
Digital Realty Trust | 3.25% | $124.28 | 14 | 5.00% | 09/13 | 09/28 | ||
DTE Energy | 3.18% | $111.14 | 9 | 6.70% | 09/14 | 10/15 | ||
Brinker International | 3.43% | $44.28 | 13 | 14.90% | 09/06 | 09/27 | ||
Ecolab | 1.09% | $150.48 | 26 | 13.10% | 09/17 | 10/15 | ||
El Paso Electric | 2.35% | $61.30 | 8 | 6.30% | 09/13 | 09/28 | ||
Eastman Chemical | 2.31% | $97.03 | 8 | 14.40% | 09/13 | 10/05 | ||
Extra Space Storage | 3.73% | $92.21 | 9 | 31.60% | 09/13 | 09/28 | ||
First American Financial | 2.95% | $56.86 | 9 | 36.90% | 09/07 | 09/17 | ||
FedEx | 1.07% | $243.95 | 17 | 27.20% | 09/07 | 10/01 | ||
FBL Financial Group | 2.26% | $81.35 | 8 | 34.50% | 09/13 | 09/28 | ||
Flushing Financial | 3.09% | $25.92 | 5 | 6.70% | 09/07 | 09/28 | ||
First Horizon National | 2.61% | $18.42 | 7 | 53.40% | 09/06 | 10/01 | ||
Financial Institutions | 2.97% | $32.30 | 8 | 8.30% | 09/12 | 10/02 | ||
Fidelity National Financial | 2.99% | $40.10 | 7 | 16.40% | 09/13 | 09/28 | ||
Franco-Nevada | 1.50% | $63.99 | 11 | 11.00% | 09/12 | 09/27 | ||
Forrester Research | 1.63% | $49.20 | 7 | 6.30% | 09/11 | 09/26 | ||
First Merchants | 1.83% | $48.12 | 7 | 47.20% | 09/06 | 09/21 | ||
GATX | 2.08% | $84.45 | 8 | 7.00% | 09/13 | 09/30 | ||
Genuine Parts | 2.88% | $99.85 | 62 | 6.80% | 09/06 | 10/01 | ||
Huntington Bancshares | 3.45% | $16.21 | 8 | 14.90% | 09/14 | 10/01 | ||
Hillenbrand | 1.62% | $51.15 | 11 | 1.30% | 09/13 | 09/28 | ||
HP | 2.26% | $24.65 | 8 | 17.40% | 09/11 | 10/03 | ||
Harris | 1.69% | $162.51 | 16 | 9.50% | 09/06 | 09/21 | ||
Ingersoll-Rand plc | 2.09% | $101.29 | 8 | 27.20% | 09/06 | 09/28 | ||
Iron Mountain | 6.51% | $36.10 | 8 | 16.20% | 09/14 | 10/02 | ||
J&J Snack Foods | 1.24% | $145.50 | 14 | 26.40% | 09/13 | 10/04 | ||
Kimberly-Clark | 3.46% | $115.54 | 46 | 6.50% | 09/06 | 10/02 | ||
Coca-Cola | 3.50% | $44.57 | 56 | 7.40% | 09/13 | 10/01 | ||
Kohl's | 3.08% | $79.11 | 8 | 11.40% | 09/11 | 09/26 | ||
Lamar Advertising | 4.72% | $77.05 | 5 | N/A | 09/13 | 09/28 | ||
Lancaster Colony | 1.54% | $156.27 | 55 | 9.00% | 09/06 | 09/28 | ||
Lam Research | 2.54% | $173.09 | 5 | N/A | 09/11 | 09/26 | ||
LyondellBasell Industries NV | 3.55% | $112.78 | 8 | 19.60% | 09/04 | 09/12 | ||
Macy's | 4.13% | $36.55 | 7 | 16.60% | 09/13 | 10/01 | ||
MB Financial | 1.98% | $48.46 | 7 | 44.50% | 09/13 | 09/28 | ||
Mercantile Bank | 2.71% | $35.41 | 7 | 52.40% | 09/06 | 09/19 | ||
Mercury General | 4.64% | $53.90 | 31 | 0.40% | 09/12 | 09/27 | ||
MDU Resources | 2.83% | $27.89 | 27 | 2.80% | 09/12 | 10/01 | ||
Methanex | 1.81% | $72.90 | 8 | 10.10% | 09/13 | 09/30 | ||
Altria Group | 5.47% | $58.52 | 49 | 8.30% | 09/13 | 10/10 | ||
Medical Properties Trust | 6.64% | $15.05 | 5 | 3.50% | 09/12 | 10/11 | ||
Merck & Co. | 2.80% | $68.59 | 7 | 2.30% | 09/14 | 10/05 | ||
Motorola Solutions | 1.62% | $128.36 | 8 | 15.40% | 09/13 | 10/15 | ||
Nasdaq | 1.84% | $95.44 | 7 | 30.20% | 09/13 | 09/28 | ||
Northern Trust | 2.05% | $107.46 | 7 | 6.10% | 09/13 | 10/01 | ||
NorthWestern | 3.67% | $59.96 | 14 | 7.20% | 09/13 | 09/28 | ||
Owens & Minor | 6.12% | $16.98 | 21 | 3.20% | 09/14 | 10/01 | ||
Occidental Petroleum | 3.91% | $79.87 | 15 | 8.70% | 09/07 | 10/15 | ||
Prosperity Bancshares | 1.92% | $74.84 | 19 | 11.20% | 09/13 | 10/01 | ||
Public Service Enterprise Group | 3.44% | $52.35 | 7 | 3.90% | 09/06 | 09/28 | ||
PepsiCo | 3.31% | $112.01 | 46 | 8.50% | 09/06 | 09/28 | ||
Principal Financial Group | 3.84% | $55.19 | 10 | 19.70% | 09/05 | 09/28 | ||
Packaging Corp. of America | 2.87% | $109.92 | 8 | 21.50% | 09/13 | 10/15 | ||
PolyOne | 1.66% | $42.26 | 8 | 23.20% | 09/13 | 10/04 | ||
PPL | 5.51% | $29.74 | 17 | 3.10% | 09/07 | 10/01 | ||
Public Storage | 3.76% | $212.58 | 8 | 12.70% | 09/11 | 09/27 | ||
Qualcomm | 3.61% | $68.71 | 16 | 18.30% | 09/04 | 09/26 | ||
Everest Re Group | 2.33% | $223.02 | 5 | 21.30% | 09/04 | 09/19 | ||
Regions Financial | 2.88% | $19.46 | 6 | 51.10% | 09/06 | 10/01 | ||
Retail Opportunity Investments | 3.95% | $19.74 | 9 | 7.20% | 09/12 | 09/27 | ||
Service Corp. International | 1.62% | $41.96 | 8 | 21.40% | 09/13 | 09/28 | ||
Simmons First National | 1.90% | $31.60 | 7 | 4.60% | 09/13 | 10/05 | ||
South Jersey Industries | 3.38% | $33.18 | 19 | 5.90% | 09/07 | 10/02 | ||
SpartanNash | 3.37% | $21.35 | 8 | 16.70% | 09/13 | 09/28 | ||
Spire | 3.02% | $74.55 | 15 | 4.80% | 09/10 | 10/02 | ||
Stanley Black & Decker | 1.88% | $140.53 | 51 | 6.10% | 09/06 | 09/18 | ||
Stock Yards Bancorp | 2.58% | $38.70 | 9 | 9.30% | 09/14 | 10/01 | ||
Telephone & Data Sys. | 2.13% | $30.04 | 44 | 4.80% | 09/13 | 09/28 | ||
T. Rowe Price Group | 2.42% | $115.89 | 32 | 10.90% | 09/13 | 09/28 | ||
Travelers | 2.34% | $131.60 | 14 | 9.60% | 09/07 | 09/28 | ||
United Bankshares | 3.45% | $39.40 | 44 | 1.30% | 09/13 | 10/01 | ||
UGI | 1.92% | $54.05 | 31 | 6.60% | 09/13 | 10/01 | ||
UMB Financial | 1.54% | $75.24 | 26 | 4.50% | 09/07 | 10/01 | ||
V.F. | 2.00% | $92.13 | 45 | 17.80% | 09/07 | 09/20 | ||
Vector Group | 10.30% | $15.53 | 20 | 5.00% | 09/17 | 09/27 | ||
Westwood Holdings Group | 4.73% | $57.53 | 16 | 10.90% | 09/06 | 10/01 | ||
Waste Management | 2.05% | $90.90 | 15 | 5.50% | 09/06 | 09/21 | ||
Worthington Industries | 1.98% | $46.58 | 8 | 10.40% | 09/13 | 09/28 | ||
Weingarten Realty Investors | 5.11% | $30.93 | 8 | 5.80% | 09/06 | 09/14 | ||
WesBanco | 2.35% | $49.35 | 8 | 8.40% | 09/06 | 10/01 | ||
Weyerhaeuser | 3.92% | $34.71 | 8 | 15.10% | 09/13 | 09/28 | ||
Xcel Energy | 3.16% | $48.05 | 15 | 6.00% | 09/13 | 10/20 | ||
XL Group Plc | 1.53% | $57.39 | 5 | 14.90% | 09/13 | 10/01 |
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Disclosure: I am/we are long D, KO, MO, QCOM, SWK, TROW, TRV, XEL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
